HKEX Ltd (HKEX: 388) corrective downside has hit the bottom and based on the technical, the stock has confirmed the bullish return:
- The inverted head and shoulder neckline resistance turned support has been broken, confirming the inverted head and shoulder bullish reversal signal.
- Using Fibonacci extension on the head and shoulder, we could see that the 161.8% and 238.2% extension level confluence with the larger retracement level of 61.8% and 78.6%-88.6% of HKD$587.00-421.00 respectively.
- Ichimoku is showing a potential “3 bullish golden cross” after the initial tankan-sen crosses above the kijun-sen, followed by the chikou-span crossing above the candles. Although the Senkou-Span A is still below Senkou-Span B, Span A is showing some resilience by sloping upwards,
*Timeline of the trade is 8 weeks from the date issued.
Ichimoku Kinko Hyo
Red dotted line = 9 Periods Tenkan-Sen
Blue dotted line = 26 periods Kijun-Sen
Green Line B= 52 periods Senkou Span B
Pink Line A = 26 periods Senkou Span A
Black line = 26 periods Chikou Span. Lagging line
We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors like (but not limited to) a stock`s risk reward profile, market sentiment, recent rate of share price appreciation, presence or absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final recommendation
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